Spotify is gearing up to raise subscription prices as it invests in new features and targets 1 billion users.
The news was first reported by the Financial Times, who were told price rises were part of Spotify’s “toolbox” after years of keeping them flat by the co-president and chief business officer of the streaming giant, Alex Norström.
Spotify didn’t introduce price hikes until two years ago. The move, alongside cost-cutting, led to the company’s first annual profit in 2024.
Prices are set to rise to 11.99 euros (A$14.05) from 10.99 euros in markets including South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific region.
Last month, the major music streamer reported that subscriber numbers rose 12% in the past year to 276 million and monthly active users were up 11% to 696 million, despite reporting a net loss for the second quarter.
“Over a quarter of a billion subscribers are currently paying us every month and just using us more and more,” Norström said.
“Are we for a billion? . . . I definitely think it’s not impossible at all. It’s certainly a goal.”
Norström said Spotify will continue to invest in AI, including the AI DJ.
While details aren’t finalised, the company is also working on a “superfan” subscription that will cost extra after securing a fresh licensing deal with Universal Music and Warner Music that would cost an extra US$6 a month.
